H.R 1663 would establish a Veterans Scam and Fraud Evasion Officer within the Department of Veterans Affairs (VA). The bill also would reduce the amount of VA pensions the department pays to certain veterans and survivors who reside in nursing homes. Implementing the bill would increase spending subject to appropriation by $12 million and reduce direct spending by $8 million over the 2025-2035 period, CBO estimates. The budgetary effects of the legislation, detailed in Table 1, fall within budget function 550 (health) and 700 (veterans benefits and services).
Spending Subject to Appropriation
Under the bill, the Veterans Scam and Fraud Evasion Officer would be responsible for coordinating efforts to protect veterans from frauds and scams. The officer would promote resources for preventing frauds and scams, provide training to department employees, and coordinate with similar efforts of other federal agencies. Using information from VA, CBO estimates the department would require four full-time equivalent employees (the new officer and three support staff) to satisfy the bill’s requirements. Compensation, benefits, and operating expenses would total $1 million in 2026, CBO estimates. Including adjustments for inflation, CBO estimates those costs would total $12 million over the 2025-2035 period. Such spending would be subject to the availability of appropriated funds.
Table 1.
Estimated Budgetary Effects of H.R. 1663
By Fiscal Year, Millions of Dollars
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2025-2030
2025-2035
Increases in Spending Subject to Appropriation
Estimated Authorization
0
1
1
1
1
1
1
1
1
2
2
5
12
Estimated Outlays
0
1
1
1
1
1
1
1
1
2
2
5
12
Decreases (-) in Direct Spending
Estimated Budget Authority
0
0
0
0
0
0
0
-8
0
0
0
0
-8
Estimated Outlays
0
0
0
0
0
0
0
-8
0
0
0
0
-8
Direct Spending
Under current law, VA reduces pension payments to veterans and survivors who reside in Medicaid nursing homes to $90 per month. That required reduction expires November 30, 2031. Section 3 of H.R. 1663 would extend that reduction for 61 days, through January 30, 2032. CBO estimates that extending that requirement would reduce VA benefits by $10 million per month. (Those benefits are paid from mandatory appropriations and are therefore considered direct spending.) As a result of that reduction in beneficiaries’ income, Medicaid would pay more of the cost of their care, increasing spending for that program by $6 million per month. Thus, enacting section 3 would reduce net direct spending by $8 million over the 2025-2035 period.
The CBO staff contact for this estimate is Logan Smith. The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis.
